Fanatics has entered a long-term, exclusive deal with Nike to manufacture college sports apparel.

The Fanatics College division already has deals with most Nike-sponsored schools, but will now collaborate with Nike itself. Fanatics Commerce CEO Doug Mack says the company plans “to maximize the value of Nike’s college partnerships by creating faster speed-to-market of fan gear.”

Financial terms weren’t disclosed. Manufacturing is reportedly set to begin in Summer 2024.

• Fanatics, which has a $27 billion valuation, will make Nike-branded replica jerseys, fan apparel, sideline apparel, headwear, and other items.
• Nike will continue to focus on in-game player products. The Swoosh is also extending its licensing relationship with collegiate partner Branded Custom Sportswear.

Nike reportedly outfitted a record 48 teams in the most recent NCAA basketball tournament and outfits more than half of Division I football programs. 

The deal with Fanatics will reportedly include Clemson, Georgia, Ohio State, Oklahoma, Oregon, and Penn State, among others — all currently Nike schools — and focus on the growth of women’s apparel. Fanatics already manufactures NFL and MLB Nike fan apparel.

Nike reported $12.23 billion in fourth-quarter revenue last month.

Further Expansion

After acquiring Topps trading cards for $500 million in January, Fanatics negotiated NCAA sports cards licensing agreements to build a network of more than 100 universities. 

Fanatics also struck a deal with OneTeam Partners to produce customizable college player jerseys and has deals with more than 200 student-athletes.

Smart home gym-maker Tonal is slashing 35% of its workforce — adding to a growing list of connected fitness companies restructuring their businesses, according to CNBC. 

Tonal — backed by a star-studded group of investors including Serena Williams, LeBron James, Steph Curry, and others — is cutting its workforce to become profitable as it aims to go public. 

• The fitness company currently employs roughly 750 people.
• Before the pandemic, its workforce stood at just over 110 employees.
• The company has yet to become profitable since its launch in 2015.
• It also plans to cut back on advertising to alleviate customer acquisition costs. 

Tonal benefited from high demand for connected fitness equipment during the pandemic. In March 2021, it completed a $250 million Series E funding round at a $1.6 billion valuation. 

Led by Dragoneer Investment Group, the round included L Catterton, Sapphire Ventures, Cobalt Capital, and athletes Drew Brees, Mike Tyson, Sue Bird, and Maria Sharapova.

To date, Tonal has raised $450 million in fresh capital. 

Connected Cuts 

Tonal joins Peloton in connected fitness companies cutting jobs. On Tuesday, Peloton announced it will suspend operations at its Tonic Fitness Technology, Inc. facility. Around 600 Tonic employees will be laid off as part of the transaction, according to Bloomberg.

Peloton acquired the Taiwan-based equipment manufacturer in 2019 for $47.4 million.

One of the Chicago Cubs’ co-owners could add another Windy City team to her portfolio.

Chicago Sky owner Michael Alter has reportedly held preliminary talks with Laura Ricketts about becoming a potential investor in the WNBA team.

After the Sky won the 2021 WNBA Finals, Alter expressed his willingness to bring on investors — clarifying that it wasn’t for a lack of financial resources, but rather to increase the team’s value.

Without confirming discussions, Alter told the Chicago Tribune that Ricketts “is a very prominent sports team owner,” adding, “If she is someone who wanted to get involved and had an interest in her, then we would certainly talk about it.”

• Laura Ricketts, along with siblings Tom, Pete, and Todd, purchased all but 5% of the Cubs in 2009 for $845 million through Chicago Baseball Holdings. They acquired the rest in 2019. 
• The family also redeveloped the area around Wrigley Field and has plans to add a sportsbook to the stadium.
• The Ricketts were one of the final bidders for Chelsea FC earlier this year but withdrew from negotiations in the late stages.

The Sky and the Cubs have worked with each other before. The former signed a multiyear deal with the latter’s Marquee Sports Network in May to carry select Sky games.

Community Relations

Ricketts and her wife Brooke Skinner reportedly are interested because the team aligns with their philanthropic efforts.

Alter said, “She has been civically active here in Chicago, which is very important to us.”